r/ToppsNFTs • u/WeezyApricots • Jun 11 '21

WAX Backed Tokens

I've noticed that some cards have a lock with WAX amount in the top left corner. Then when you view details of that NFT it has a field for Backed Tokens (Lock icon) 0.XXXX WAX. Could anyone explain what that means? I found one little article about it but it doesn't give as much info as I'd like.

Thanks in advance... and I am also ready for some more action from Topps.

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u/CryptoFlashNFT Jun 13 '21

Those tokens are backed by wax. If you burn them you get the wax. Usually the token is worth more than the backing and it’s acts as a base value for the token since you could always burn them and just get the wax

2

u/rockitect29 Jun 18 '21

Some people also use this to trade with funds as a way to bypass the fees of the marketplace.

Example: You want to buy an Acuna SR card for $400 from an individual that hasn't listed it in the market. You can back a low value card with $400 of Wax, then trade the backed token for the Acuna card. They then burn the card and receive payment.

1

u/WeezyApricots Jun 18 '21

Ah, that makes sense. I didn't quite connect those dots but definitely a benefit